Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, October 24, 1994 TAG: 9410240088
SECTION: VIRGINIA PAGE: A1 EDITION: METRO
SOURCE: ALEC KLEIN STAFF WRITER
DATELINE: RICHMOND LENGTH: Medium
Call it Ollie Inc.
Like a flush corporate machine, Oliver North has spent more than six times as much on his U.S. Senate campaign as his two opponents combined, the latest finance reports show.
North, fueling Virginia's most costly Senate race ever, can spend so much because he can generate so much through a direct-mail empire. The Republican candidate is expected to break the record for the most money raised in a U.S. Senate race. Sen. Jesse Helms, R-N.C., set the record in 1990, amassing $17.8 million.
As fast as North has raised money, he has plowed it back into the campaign. From July 1 to Sept. 30, his campaign netted $6.5 million and spent nearly $6.3 million.
During that time, Democratic incumbent Sen. Charles Robb spent $813,882 and independent Marshall Coleman's costs amounted to $164,363, according to reports filed with the Federal Election Commission.
For all of North's financial mastery, his campaign shoulders massive overhead expenses. Of every dollar his campaign spends, records show, more than 50 cents goes to raise more money.
On payroll taxes alone, North spent $90,635 in three months. To process thousands of daily donations, his campaign spent nearly $85,000 - more than Robb's printing costs, or Coleman's payroll and media expenses.
"It is a large organization, but it's not easy to unseat an incumbent," North spokesman Dan McLagan said.
Combined, the three candidates spent $7,256,405.25 in three months, enough to buy a year's service from baseball player Barry Bonds, 604,700 compact discs, or a month of food and supplies for 345,543 impoverished children through the Christian Children's Fund.
In strictly financial terms, a business professor compared Coleman's operating expenses to a mom-and-pop restaurant and Robb's to a "pretty big gas station" with a food mart.
By contrast, North's financial juggernaut measured up to a manufacturing plant with 200 employees. "It's not a Reynolds Metal [factory], but you're getting there," said C. Ray Smith of the University of Virginia.
North's expenses, while great, have still left room to invest heavily and reap dividends. Spending more than $1.4 million on television advertising from June through September, may have softened North's Rambo-esque image.
"Let's look at it like three companies competing for a market," said Roger H. Ford, a banker and entrepreneur and James Madison University professor. "The first thing you notice is one of them has money and the others don't."
Rarely has an incumbent faced a challenger who can outspend him. Robb's quandary shows up in the records: The Democrat spent $118,000 on political consulting fees, $4,000 more than North.
With less at his disposal, Robb has tried to do what North has done, only on a smaller scale: The incumbent has spent heavily to get his message out through mass mailings, printing, telemarketing and postage.
Records, however, also reflect Robb's limitations. Through September, he had spent only $15,000 on television advertising.
Robb has had to conserve his resources for the manic final push. Records show that, by late September, Robb and North had about the same amount of cash on hand - $1 million - and the two candidates are in a statistical dead heat in the polls.
North's "millions didn't buy him an advantage," Robb spokesman Bert Rohrer said. "First of all, we never planned to try to match him dollar for dollar ... Robb is financially conservative in everything he does, whether it's his personal life, government, or a political campaign."
Even Coleman, trailing badly in polls, outspent Robb in television advertising through September, records show. Otherwise, the independent candidate has been frugal out of necessity, relegated to standing on the financial sidelines and decrying a campaign of breakneck spending.
"Virginia's never seen this before," said C. Anson Franklin, Coleman's campaign manager. "[Campaigning has] become a bit tawdry."
Keywords:
POLITICS
by CNB